EBay has pulled all of its paid search ads from Google AdWords network in the U.S in an eyebrow-raising move likely to be interpreted in the industry as a sign of deteriorating relations between the two Internet giants.
Durzy characterized the decision to pull the U.S. Google ads as an instance in a continued experiment eBay does to determine the best allocation of its advertising and marketing budget.
But a source familiar with the situation said the move is an angry reaction by eBay's management to Google's decision to hold a protest party concurrent with the start of eBay Live, the company's annual conference for merchants.
Why does it matter? eBay was once the largest ad buying on all of Google.
Msg#: 3366633 posted 5:21 pm on Jun 18, 2007 (gmt 0)
Media Post search insider is reporting that Ebay is spending an average of $26 million a month in 2007 on AdWords. That puts it on track to spend $325 milion this year. That's big big big bucks. There will be some seriously hurting Adsense sites out there. Adwords will continue to rock of course, but there are alot of as sites living off ebay ads.
Msg#: 3366633 posted 1:35 pm on Jun 19, 2007 (gmt 0)
Our firm manages < a lot of PPC >, and our AdWords data models are showing a 3-4% decline in Google retail CPC's. Don't expect that to last long, however, as advertisers will quickly pick up EBay's slack. My estimate is that Google sees at most a 0.25-0.5% decline in revs this quarter as a result, and no more.
The whole thing is overblown - there will be no effect on Google.
[edited by: tedster at 2:38 am (utc) on June 20, 2007]
Msg#: 3366633 posted 8:29 pm on Jun 20, 2007 (gmt 0)
How can there be no effect? Ebay is the largest advertiser they have even if it is only 2%. No one wants to lose their biggest customer. The vast amount of garbage ads that ebay had is going to impact the sales level as others probably won't take those spots.